After explaining the overview of the course. And after explaining which technology is disrupting the legal business and which in this technology is changing the business model of the law firms. We're gonna explain how the law firms are changing their business model. And the reason is that technology. And why the startups are changing the business model of the legal sector. OK. First of all, we need to think about a classical law firm, they used to sell hours. Yes, they sell hours, it's like a consulting service. You've got a law firm and some people comes to your law firms and you say, "OK, what do you want?" "I want an agreement." OK. You say, "OK. That agreement is gonna cost me 3-4 hours." Then you, if you are a classical law firm, you charge for that four or three hours. That's a classical business model. You have, for example, 10 hours for every day. X hours per weeks. X hours, every year. And your business was selling hours. Now, the startups that are changing the business, they are changing the rules. They don't sell hours. They sell documents, they sell services. Because the customer, they don't want to buy hours. OK, let's think about a user, a customer, what they want to buy? If they have a legal need, they want a solution. They don't want to buy hours. That's the classical approach. And that is, that's very important. In one of my companies that is called El Abogado, it's a legal marketplace where the lawyers, they want to get new customers, and the customers want to contact with lawyers. Those new customers, they have changed the rules because they want to talk with more than one lawyer. Yes, they want to talk with more than one lawyer. The classical approach was, I go to my law firm and just, I explain my problem. Now the customers, they go to different lawyers. Say, "OK, I want a fixed price. I don't want to buy hours. I want to know the exact price for that document or for that services." And the technology is changing that. And why? Because for example if you are a startup that you are selling an agreement, you sell an agreement. You don't sell the hours that you have invested to build up that document. What's the next change? The next change is, now, the law firms are not disconnected. The classical business was, OK, each town has their own law firms. Yes. Imagine that. Each town has their own law firms. But you could think, "Okay, there are very big firms that they have in each country, in each city, an office". Yes, but they need to have an office in that city. Now, in the revolution of the startups they are changing the rules. You can provide the service from one point to another point to another point of the whole country. And why? Why? Why is that reason? Because the people, they don't want to buy or they don't want to contact with your law firms. They want to get the best lawyer in that case. For example, if you have a problem in your heart, you go to the best doctor that you know that could solve the problem in your heart. You did not, you don't go to the classical doctor of your town, your family doctor. And that is apply also for the law firms. Let's imagine if you have, for example, a very important tax problem. You don't go to the general lawyer in your town. You search on the internet for the best lawyer close to your house, could be in your city or in the next city that is the best expert in tax problem. And the third point that is very important, is that the changes of the business in the legal sector is that that change could be done for people that are not lawyers. Yes, the service and the new startups could be incorporated and created for a person that they're not lawyer. Then imagine if you are not a lawyer, if you work in the legal sector but you are not a lawyer, you can start a new project, a new business in the legal sector. And why? The reason is because the technology is very very important right now. And you could hire lawyers in your company but you don't need to be a lawyer. In the next video, I will explain which are the legal tech business area that are changing. The next video is very interesting because we are gonna talk about specific business areas in the legal sector that are gonna change.
